This Special Issue denotes the first comprehensive attempt to place business and human rights-related (BHR) developments in the Central and Eastern Europe (CEE) region on the map of global discussions in BHR. The CEE is a geographical area that is historically, politically, socio-economically, geo-strategically and culturally distinct from other regions, including Western Europe. Hence, this Special Issue explores the region’s specific elements and factors and how they affect and influence the implementation and embedding of human rights in the practice of business enterprises in the region. The ‘Scholarly Articles’ and ‘Developments in the Field’ pieces collected in this issue highlight the promising and not-so-promising developments and practices of state institutions, business enterprises, and other actors. It documents the current situation in the region and outlines ideas and prospects for addressing the identified challenges over the next decade. As an introduction to the Special Issue, this editorial outlines the region’s leading trends and prospects in BHR. It reflects on persisting challenges and notes the region’s progress in BHR awareness, knowledge and capacity in recent decades.

According to the famous argument of Max Weber, there is a strong and direct connection between the rule of law and economic success: the establishment of the rule of law facilitates the functioning of an efficient economy. Indeed, as Weber argued, the emergence and establishment of a rational legal order and formation of law-based political authority were important factors which explain rapid economic growth. These theses of Max Weber reflect long lasting and deeply embedded European legal cultures and legal mentalities. Recent developments in Eastern and Central Europe, especially privatization of state-owned property, challenge a simplistic understanding of the Weberian argument. The sheer amount of property to be privatized, and the strong interests involved make the rule of law toothless, especially if the state is weak. Moreover, the very principle of the rule of law becomes questionable if the law represents a product of dominating interests, in the context of political capitalism. Thus, instead of the law-controlled privatization of national property, one observes growing corruption, nepotism and clientelism as important mechanisms of law making. Additionally, the weakness of government, above all the weakness of the law-applying and law enforcing agencies, and the traditional, formalistic understanding of the rule of law principle, additionally contribute to pathologies of economic transformation in Eastern and Central Europe, after the fall of the Berlin Wall.